Business Models for Food Delivery App like UberEats in 2025

Last Updated on May 22, 2025

Remember when ordering food meant flipping through a crusty takeout menu and praying they’d get your address right? Yeah, same. Fast-forward to 2025, and food delivery apps like Uber Eats have gone full glow-up. We’re talking drone drops, AI chefs, ghost kitchens, and even subscription-based burritos. With Gen Z’s obsession with speed, sustainability, and good UX, the food delivery game isn’t just about getting dinner—it’s about delivering experiences.

In 2025, the competition is hotter than Nashville wings. Delivery platforms are ditching the old commission model and cooking up creative, tech-driven ways to stay profitable, keep customers loyal, and support local businesses. Whether you’re an app founder, a foodie entrepreneur, or just someone who impulse-orders ramen at 2 AM, understanding these new business models is.

Let’s break down what’s cooking in the future of food delivery—what’s working, what’s next, and how your brand can cash in while staying on trend.

The Decline of the Traditional Model

Let’s face it: the traditional commission model that food delivery apps have relied on for years is starting to feel… stale.

For a long time, platforms like Zomato, Swiggy, Uber Eats, and DoorDash made their money by charging restaurants hefty commission fees, often between 25% to 35% per order. But what once worked in the early days of online food delivery is now under serious scrutiny.

Here’s the problem: restaurants are struggling to stay afloat while paying a third of their earnings to aggregators. Imagine a small local pizzeria that makes ₹800 on an order. After a 30% commission, they’re left with just ₹560 before even covering ingredients, rent, staff, and other expenses.

No surprise that many restaurant owners feel trapped.

This model also affects consumers. As restaurants try to maintain margins, prices on delivery apps get inflated. That biryani that costs ₹300 in-store might cost ₹450 online, plus delivery and service fees. Ouch.

Now add in the consumer’s growing awareness of this broken system. Loyalty starts to fade. Trust erodes. And suddenly, the whole equation is out of balance.

So what’s changing?

In response to the unsustainable commission model, food delivery platforms are pivoting toward becoming enablers, not just aggregators. Think of it as Platform-as-a-Service (PaaS) for restaurants.

Instead of charging commissions on every order, platforms are now offering tools, such as logistics, POS integration, marketing support, and customer data, in exchange for a flat subscription fee or a pay-per-use model.

Companies like Toast and Square have already embraced this model, providing end-to-end SaaS services for restaurants, while delivery players like Dunzo and Magicpin are experimenting with reduced-fee, hyperlocal delivery networks.

In India, Magicpin’s MagicNow service is gaining traction, reportedly contributing to over 13% of its delivery orders and aiming for 20% by FY26. Why? Because it gives restaurants better margins and customers faster delivery, without the bloated fees.

The commission model is cracking under pressure. And in its place, a more collaborative, tech-driven ecosystem is emerging—one where restaurants get the tools to thrive, customers get better prices, and platforms build long-term loyalty through value, not just visibility.

For restaurants, this shift could mean taking back control of their business. For customers, it means more transparency. And for platforms? It’s a chance to evolve from just middlemen to true partners in the food economy.

The future of food delivery isn’t just about bringing meals to your door—it’s about redefining how the kitchen, the customer, and the cloud work together.

Also read: Details About Moonfood – Food Delivery App Script by Oyelabs

Top 8 New Business Models 

Subscription-Based Delivery Services

In recent years, subscription-based delivery services have emerged as a significant game-changer in the food delivery landscape. Platforms like Uber One, DoorDash Pass, and Grubhub+ offer customers the opportunity to pay a flat monthly or annual fee in exchange for perks such as free delivery, reduced service fees, or exclusive access to certain restaurants. This model provides both customers and delivery platforms with clear benefits and challenges. 

For customers, a subscription model simplifies budgeting by eliminating unexpected service charges and often encourages more frequent orders. The ability to save on delivery fees makes it an attractive choice for people who order takeout regularly. For platforms, it creates a predictable revenue stream and fosters customer loyalty. Subscriptions can result in customers sticking with the platform for longer periods, as they are motivated to make the most of their subscriptions.

However, the subscription model is not without its challenges. The primary difficulty lies in balancing the costs associated with offering such services with the income generated from subscriptions. For delivery platforms, this could mean losing money on high-frequency users who order often but for lower-cost meals. 

Additionally, the appeal of a subscription service must be strong enough to convert non-subscribers into paying customers, which can be a challenge in a saturated market. Platforms need to provide compelling incentives to sign up, such as exclusive restaurant access, additional discounts, or faster delivery times. Another consideration is market saturation—platforms must ensure that the service isn’t perceived as too expensive or too limiting, especially if users find more value in paying per order.

Despite these challenges, subscription-based models are here to stay. According to recent statistics, nearly 50% of food delivery customers have indicated they would consider signing up for a delivery subscription service if it offered free delivery and discounts. As competition intensifies in the food delivery industry, more platforms are expected to adopt this model to retain and grow their customer base.

Also read: Integrating AI Into Food Delivery – Innovations That Will Dominate 2025

Virtual Brands & Ghost Kitchens

Virtual brands and ghost kitchens have emerged as innovative solutions to meet the growing demand for food delivery without the substantial overhead of traditional restaurants. Ghost kitchens, also known as cloud kitchens or dark kitchens, are commercial kitchens used solely for fulfilling online orders. These kitchens are typically located in non-prime real estate areas, significantly reducing rent and operational costs. 

Virtual brands, on the other hand, are food concepts created specifically for delivery and are usually only available on delivery apps. These brands don’t have a physical storefront, and they operate out of shared kitchen spaces. This model has allowed established restaurants to expand their menu offerings without the need to invest in new physical locations.

One of the primary advantages of ghost kitchens is their ability to minimize overhead costs. By eliminating the need for a physical storefront, high rent, and other costs associated with traditional dining establishments, these kitchens can focus their efforts on delivering food efficiently and affordably. 

The reduced cost structure allows for higher profit margins. Furthermore, ghost kitchens can quickly scale and adapt to customer preferences, launching multiple virtual brands from the same kitchen space. This ability to pivot quickly based on demand can provide a competitive edge in an ever-evolving market. For example, a ghost kitchen might serve multiple cuisines under different brand names, catering to various customer tastes and tapping into diverse markets.

However, the ghost kitchen model does face challenges, especially around brand recognition and customer loyalty. Since these kitchens operate without a storefront, customers may not connect with the brand in the same way they would with a traditional restaurant. Building trust can be difficult, particularly if the food quality or service fluctuates. 

Furthermore, ghost kitchens are entirely reliant on third-party delivery platforms for customer acquisition, meaning they don’t have direct control over customer relationships, which could limit the ability to build a long-term brand presence. Despite these challenges, the rise of ghost kitchens is inevitable, as consumer demand for food delivery continues to grow, with an expected market size of over $1 trillion globally by 2025.

Also read: How to Attract Restaurant Partners to Your Food Delivery App

Hyper-Local Partnerships & Community Commerce

In response to growing consumer demand for sustainability and locally-sourced products, food delivery services are increasingly turning to hyper-local partnerships and community commerce. These collaborations involve working closely with local farmers, producers, and businesses to offer customers fresh, seasonal ingredients while supporting regional economies. 

By establishing these partnerships, food delivery apps can ensure the quality of ingredients and cater to customers who prefer fresh, farm-to-table experiences. Hyper-local partnerships also reduce the carbon footprint associated with long supply chains, which aligns with the values of eco-conscious consumers.

For food delivery services, partnering with local businesses offers several benefits. It can enhance the perceived value of a platform by offering unique, regionally-inspired dishes that may not be available through larger, global restaurant chains. This allows apps to differentiate themselves in an increasingly competitive market. 

Moreover, local partnerships can foster stronger relationships with communities, building trust and loyalty among consumers. Customers who care about sustainability and supporting local businesses are more likely to choose food delivery platforms that prioritize these values, creating a loyal customer base that is willing to pay a premium for locally sourced meals.

However, there are challenges associated with hyper-local partnerships. For one, managing supply chains with local businesses can be more complex and require more coordination than working with large-scale suppliers. Seasonal variations in product availability or fluctuating pricing can lead to inconsistencies in product offerings, which may frustrate customers. 

Additionally, relying on smaller, local suppliers can sometimes result in scalability issues, especially if there’s a surge in demand. Nonetheless, with growing consumer awareness of environmental issues and a shift toward supporting local businesses, hyper-local partnerships are expected to play a pivotal role in the future of food delivery.

Also read: The Best Marketing Tactics to Promote Your Food Delivery Platform

AI-Powered Personalization & Predictive Ordering

Artificial intelligence (AI) is transforming the food delivery industry by enhancing personalization and predictive ordering. These technologies allow platforms to analyze vast amounts of customer data to tailor the user experience, making food delivery more efficient, accurate, and customer-centric. 

By studying order history, preferences, and browsing patterns, AI can recommend personalized menus, suggest meals based on past orders, and even predict when a customer is likely to place an order. This level of personalization increases customer satisfaction and drives repeat business.

Predictive ordering, another AI-powered feature, allows food delivery platforms to anticipate customer needs before they even make a request. By understanding patterns in user behavior, AI systems can predict when a customer might be hungry or when they typically place orders, ensuring faster delivery and enhancing customer experience. 

This predictive capability can also optimize kitchen operations and delivery routes, improving efficiency across the entire food delivery ecosystem. For example, by analyzing order data, AI can ensure that kitchens are prepared for busy hours and that delivery drivers are assigned to the most efficient routes, reducing delivery times and costs.

However, AI in food delivery also comes with its challenges. Privacy concerns are one of the major hurdles, as customers may be hesitant to share personal data with platforms. Striking the right balance between personalization and data security is crucial. 

Furthermore, implementing AI technologies requires significant investment in both infrastructure and expertise. Smaller food delivery platforms or independent restaurants may struggle to afford such systems. Despite these challenges, the potential benefits of AI-powered personalization and predictive ordering are immense. According to industry forecasts, AI in food delivery is expected to be worth $13.7 billion by 2027, a testament to its growing importance in the sector.

Drone & Autonomous Vehicle Deliveries

The future of food delivery lies in innovation, and two technologies leading the charge are drones and autonomous vehicles. These innovations aim to revolutionize how food is delivered by speeding up delivery times and reducing costs. 

Drones, which are being tested by platforms like DoorDash and Uber Eats, promise to deliver food to customers in a matter of minutes, bypassing traditional traffic and road congestion. Autonomous vehicles, from delivery trucks to self-driving cars, are also being developed to handle deliveries without human drivers.

The potential benefits of drones and autonomous vehicles are significant. Drones can deliver food faster than traditional methods, reducing delivery times from an average of 30 minutes to as little as 10 minutes in some cases. This speed is particularly valuable for customers who want a quick and efficient dining experience. Autonomous vehicles, on the other hand, offer the promise of reduced labor costs. 

As these vehicles become more common, food delivery platforms will no longer need to rely on human drivers, cutting down on expenses related to wages, insurance, and vehicle maintenance. Additionally, autonomous vehicles and drones have the potential to reduce carbon emissions by using cleaner energy sources, contributing to more sustainable food delivery practices.

However, the widespread adoption of drones and autonomous vehicles faces several obstacles. Regulatory issues are one of the main challenges. Drones, in particular, must comply with strict aviation regulations, and their use is still limited in many regions. Autonomous vehicles must also meet safety standards before they can be deployed on public roads. 

Furthermore, the infrastructure needed to support these technologies, such as charging stations for electric autonomous vehicles or drone landing pads, requires significant investment. Despite these challenges, the promise of faster, cheaper, and more sustainable food delivery makes drone and autonomous vehicle deliveries an exciting area of innovation, and it is expected to play a central role in the future of the food delivery industry.

Also read: Launching a Food Delivery Business with Readymade App Script

In-App Advertising & Sponsored Listings

In-app advertising and sponsored listings are becoming an increasingly popular revenue model for food delivery apps. With millions of users browsing these platforms daily, the opportunity to monetize through targeted advertising has become a win-win for both platforms and advertisers. 

Sponsored listings allow restaurants or food brands to pay for prime placement within the app, ensuring that their offerings are seen first by potential customers. This model functions similarly to search engine ads, where restaurants bid for top spots on the app’s search results, offering them more visibility and potentially increasing their order volume.

The benefit for food delivery platforms is clear: they get an additional revenue stream without increasing delivery costs or commission fees. In fact, research suggests that in-app advertising is expected to account for 25-30% of revenue for food delivery apps by 2027. 

By leveraging user data, platforms can also serve highly targeted ads. For instance, if a user frequently orders vegetarian food, they might see more advertisements for plant-based restaurants. This form of hyper-targeted marketing makes the ads more relevant to customers, leading to higher engagement rates and better return on investment for advertisers.

For restaurants, the opportunity to boost visibility and attract new customers can be a game-changer, particularly for small businesses that might not have the budget for large-scale marketing campaigns. 

However, the downside is that this model could potentially create a crowded user experience if too many ads clutter the interface, making it frustrating for users. Additionally, the rising costs of sponsored placements might be a barrier for smaller restaurants trying to compete with larger chains.

Despite these challenges, the future of in-app advertising in food delivery looks promising. As consumer behavior continues to shift toward digital, and as apps gather more data about user preferences, targeted ads are only going to become more sophisticated and impactful.

Also read: Why Food Delivery Startups Fail – The Right App Saves You

Loyalty Programs & Gamification

Loyalty programs and gamification are two strategies food delivery platforms use to foster customer retention and increase lifetime value. With fierce competition in the food delivery market, encouraging customers to return repeatedly is key to sustaining long-term profitability. 

Loyalty programs, which reward customers for frequent orders, typically offer points, discounts, or exclusive deals. These programs work because they tap into consumers’ innate desire for rewards. Every time a customer orders, they’re one step closer to earning something valuable, creating a sense of accomplishment, and incentivizing repeat purchases.

Gamification takes it a step further by integrating game-like elements, such as points, badges, and challenges, into the ordering experience. Imagine being able to collect points every time you order, and then unlocking a badge when you complete a “streak” of ordering a certain number of times in a month. This adds an extra layer of fun to the ordering experience and increases engagement. 

For example, Domino’s Pizza uses gamification through its “Pizza Tracker,” where customers can visually track their pizza’s journey from the oven to their doorstep. This kind of interactive experience strengthens emotional ties with the brand, making users feel more connected.

The benefits of loyalty programs and gamification are evident. Customers are likely to choose the same delivery app if it offers rewards, especially if they’re close to earning something valuable. Furthermore, loyalty programs can also drive higher average order values, as users may add more items to their cart to earn rewards. 

However, the downside is that managing these programs can be costly and time-consuming. Platforms need to ensure the rewards are enticing enough to drive engagement, but not so generous that they eat into profit margins. Additionally, maintaining the balance between fun and over-saturation is important, as excessive gamification may lead to fatigue.

Despite the challenges, the adoption of loyalty programs and gamification continues to rise. According to studies, businesses that implement loyalty programs see up to a 20% increase in sales. As the food delivery market grows, expect to see more innovative ways for platforms to engage and retain customers through these strategies.

Pay-Per-Order SaaS Models for Restaurants

The emergence of Pay-Per-Order Software-as-a-Service (SaaS) models is transforming the way food delivery platforms interact with restaurants. Unlike traditional commission-based models, which take a cut from each order placed through the platform, the pay-per-order SaaS model allows restaurants to pay a flat fee or subscription cost for access to the delivery platform’s services. 

Essentially, restaurants pay based on the number of orders they receive through the app, rather than a percentage of their earnings. This shift can be particularly beneficial for small and independent restaurants that struggle with the high commission fees often associated with traditional models.

The key benefit of pay-per-order models is the ability for restaurants to maintain better control over their profit margins. With fixed fees, there are no surprises, and businesses can more accurately predict and manage their expenses. This pricing structure can be particularly attractive to smaller restaurants that may not have the resources to absorb large commissions on each order. In addition, pay-per-order models often include access to customer support, marketing tools, and analytics, which help restaurants optimize their operations and improve their visibility within the app.

On the flip side, the model does come with its own challenges. For one, the upfront subscription fee can be a barrier for some restaurants, particularly during slower seasons when order volumes are lower. Additionally, platforms that operate under this model may need to offer additional value in the form of robust marketing and customer engagement tools to justify the subscription cost. Restaurants also have to be confident that their customer base is large enough to cover the fixed costs associated with the SaaS model, which may not always be the case for those just starting out.

Despite these challenges, the pay-per-order SaaS model has gained significant traction in recent years. It aligns the interests of the platform and the restaurant more closely, as both benefit from higher order volumes. With the global online food delivery market expected to reach $200 billion by 2025, more restaurants are likely to consider this alternative to the traditional commission model as they seek more predictable costs and greater profitability.

Launch your Food Delivery Apps with Oyelabs

Ready to disrupt the food delivery scene? Launch your food delivery app like DoorDash or Uber Eats with Oyelabs—your trusted app development partner. Whether you’re a restaurant owner, startup founder, or entrepreneur, we provide end-to-end tech solutions that are fast, scalable, and tailored to your business goals. 

From real-time order tracking and smart delivery management to custom branding and seamless user experiences, our white-label food delivery app helps you go to market faster and stronger. With Oyelabs, you don’t just get an app—you get a tech partner invested in your growth. Let’s cook up success together. Reach out today and start building your food delivery empire with Oyelabs!

Conclusion

As we look ahead to 2025, the food delivery landscape is evolving faster than ever. With innovations like hyper-local delivery, AI-powered logistics, and subscription-based models, entrepreneurs have endless opportunities to carve out a niche. Embracing flexible, customer-centric business models will be key to standing out in a competitive market. 

Whether you’re launching a new app or scaling an existing platform, adapting to these emerging trends can drive growth and long-term loyalty. The future of food delivery isn’t just about convenience—it’s about smart, sustainable innovation. Now’s the time to rethink your strategy and build a business model ready for tomorrow.